Privatization of public-sector assets to increase divestment receipts: MoS

According to the Finance Ministry, the possibility of selling minority ownership has decreased.

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Privatization of public-sector assets to increase divestment receipts: MoS

Privatization would be the principal mode of disinvestment receipts from now on, Parliament was informed on Monday.

The potential for minority stake sale has decreased as a result of disinvestment over time, said minister of state for finance Bhagwat KishanraoKarad in a written reply to the Lok Sabha.

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He stated that the disinvestment of government equity in public sector units is heavily influenced by market mood, investor interest, and stock market price.

According to figures provided by the minister in the House, disinvestment receipts accounted for 0.95-4.68 percent of the Centre’s total receipts from 2014-15 to 2020-21.

The proportion was lowest in 2020-21, at 0.95 percent, and largest in 2017-18, at 4.68 percent, according to the data.

The revised estimates (RE) for disinvestment receipts in 2020-21, according to Karad, are Rs 32,000 crore. As of March 31, 2021, the government had realized disinvestment receipts of Rs 32,845 crore or approximately 103% of the RE in 2020-21.

“Due to fluctuating market conditions caused by Covid,” he explained, “the RE was much lower than the budget expectations (BE) for 2020-21.”

That year, the government estimated disinvestment receipts at Rs 2.1 trillion, including Rs 90,000 crore from public sector banks (PSBs) and financial institutions.

States receive GST compensation

The states were owed Rs 37,134 crore in goods and services tax (GST) compensation for 2020-21, and Rs 14,664 crore for the first half of the current fiscal year. This is after taking into account the money disbursed from the compensation fund and back-to-back loans, according to Pankaj Chaudhary, minister of state for finance, in the Lok Sabha.

He stated that the Centre is committed to providing full GST compensation to states and union territories during the transition phase in accordance with the GST (compensation to states) Act, 2017. This will be accomplished by extending the compensation cess fee beyond five years in order to cover the revenue gap and servicing the loan under the special window scheme. “The states’ share of the central portion of GST is released on a regular basis,” Chaudhary added.

The Fiscal Council has ruled out

The finance ministry has rejected the establishment of a fiscal council, as recommended by the N K Singh committee on Fiscal Responsibility and Budget Management. He stated that institutions such as the Comptroller and Auditor General of India, the National Statistical Commission, and the Finance Commission play some or all of the tasks outlined by the FRBM Review Committee.

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Privatization of public-sector assets to increase divestment receipts: MoS
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According to the Finance Ministry, the possibility of selling minority ownership has decreased.
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THE POLICY TIMES
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